CX Metrics Don’t Stack Up To Financial Metrics

In the recent Temkin Group report State of CX Metrics, 2011, we examined many aspects of CX metrics programs. As part of that research, we asked respondents from large companies to rate their effectiveness at certain aspects of a CX metrics program. Here’s a summarized version of their responses.

My take: As you can see, only about half of respondents think they’re doing a good job collecting and communicating CX metrics — and that’s the most effective thing that they’re doing. Less than one out of five think they’re good at making trade-offs between financial and CX metrics.

What does that mean? Even companies that are measuring their customer experience aren’t able to use this information effectively to sway decisions. So short-term financial metrics continue to set the course for most companies.

It doesn’t make sense to ignore financial metrics, but companies need to do a better job of balancing them with CX metrics. While financial metrics often look at historical performance, CX metrics can give a better sense of the future. So companies should build up their confidence in CX metrics so that decisions are made based on an explicit analysis of short-term and long-term goals.

The bottom line: CX metrics need to guide business decisions

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I am a customer experience transformist, helping large organizations improve business results by changing how they deal with customers. As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. I am also a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey.
Simply put, I am passionate about spotting emerging best practices and helping companies master them. And, as many people know, I love to speak about these topics in almost any forum.
My “title” is Managing Partner of the Temkin Group, a customer experience research and consulting firm that helps organizations become more customer-centric. Our goal is simple: accelerate the path to delighting customers.
I am also the co-founder and Emeritus Chair of the Customer Experience Professionals Association (CXPA.org), a non-profit organization dedicated to the success of CX professionals.

2 thoughts on “CX Metrics Don’t Stack Up To Financial Metrics”

That’s the question for the ages isn’t it? What to prioritize, long term or short term benefit? As the economy begins to show signs of life, I’m hopeful that corporate leaders will begin thinking more strategic and long term. With that customer experience, along with other more strategic but less quick hit initiatives should begin to come to the forefront.

I think you make a great point. Customer experience analytics can give us a heads up of what is to come before everyone starts scrambling to fix a problem after the fact. It’s a good way to stay on top of how your brand is performing.